ZBRA » Topics » Research and Development Costs

These excerpts taken from the ZBRA 10-K filed Feb 27, 2009.

Research and Development Costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

     December 31,    Percent    Percent of    Percent of
           2008                2007                Change            Net sales - 2008          Net sales - 2007    

Three months ended

     $ 20,653          $ 15,642        32.0    8.9    6.7

Year ended

     85,120          57,600        47.8    8.7    6.6

Quarterly product development expenses fluctuate widely depending on the status of ongoing projects. We are committed to a long-term strategy of significant investment in product development. Changes in research and development costs, compared to the same periods in 2007, are due to the following (in thousands):

 

    

Three Months Ended
December 31, 2008

       

Year Ended
December 31, 2008

    

Payroll and benefit costs

      $ 4,029              $ 17,867   

Professional services expenses

        748                2,732   

Project expenses

        (214 )              2,120   

Office services costs

        428                2,121   

Other changes

        20                2,680   
    

Total increases

      $ 5,011              $ 27,520   

The increases are primarily related to the ESG acquisitions, which increased research and development costs by $3,774,000 during the fourth quarter and $18,833,000 for the full year of 2008.

 

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Research and Development Costs

Research and development costs are summarized below (in thousands, except percentages):

 

For the Year Ended    Research and
Development Costs
   Percent of
Net sales
      

December 31, 2007

   $    57,600                6.6    

December 31, 2006

   48,959                6.4    

Percent Change

   17.6               

For 2007, research and development expenses increased as a result of increased payroll costs of $6,950,000 and higher professional services costs of $1,543,000. These increases were related, in part, to recent acquisitions, which increased research and development expenses by $7,387,000 during 2007.

This excerpt taken from the ZBRA 10-K filed Feb 29, 2008.

Research and Development Costs

Research and development costs are summarized below (in thousands, except percentages):

 

For the Year Ended

   Research and
Development Costs
   Percent of
Total Sales

December 31, 2006

   $ 48,959    6.4

December 31, 2005

     47,359    6.7

Percent Change

     3.4   

For 2006, research and development expenses increased primarily due to increases in payroll costs of $4,533,000 and professional services of $230,000, offset by a decrease in project expenses of $3,179,000. Included in the 2005 project expenses are write-offs of tooling and other materials related to product development in the amount of $2,726,000. Also during 2005, we incurred research and development costs, which totaled $2,882,000, to re-engineer our products to make them compliant with new environmental laws that went into effect in 2006.

 

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Table of Contents
This excerpt taken from the ZBRA 10-Q filed Nov 2, 2007.

Research and Development Costs

The development of new products and enhancements to existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

     Three Months Ended    Nine Months Ended
     September 29,
2007
   September 30,
2006
   Percent
Change
   September 29,
2007
   September 30,
2006
   Percent
Change

Research and development costs

   $ 13,904    $ 11,774    18.1    $ 41,958    $ 36,191    15.9

Percent of sales

     6.4      6.3         6.6      6.6   

Quarterly product development expenses fluctuate widely depending on the status of on-going projects. We are committed to a long-term strategy of significant investment in product development. For the third quarter of 2007, payroll costs increased $1,647,000 in relation to the third quarter of 2006. Year-to-date, research and development costs were also affected by increased payroll costs.

This excerpt taken from the ZBRA 10-Q filed Aug 3, 2007.

Research and Development Costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

     Three Months Ended    Six Months Ended
     June 30,
2007
   July 1,
2006
   Percent
Change
   June 30,
2007
   July 1,
2006
   Percent
Change

Research and development costs

   $ 13,869    $ 12,382    12.0    $ 28,054    $ 24,417    14.9

Percent of sales

     6.6      6.6         6.7      6.7   

Quarterly product development expenses fluctuate widely depending on the status of on-going projects. We are committed to a long-term strategy of significant investment in product development. For the second quarter of 2007, payroll and benefits increased by $1,540,000 in relation to the second quarter of 2006. Consulting and other professional services also increased $633,000 and project expenses decreased $955,000. The year-to-date increases were also a result of these costs.

This excerpt taken from the ZBRA 10-Q filed May 4, 2007.

Research and Development Costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

     Three Months Ended
     March 31,
2007
   April 1,
2006
   Percent
Change

Research and development costs

   $ 14,185    $ 12,035    17.9

Percent of sales

     6.8      6.8   

 

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Table of Contents

Quarterly product development expenses fluctuate widely depending on the status of on-going projects. We are committed to a long-term strategy of significant investment in product development. For the first quarter of 2007, payroll and benefits increased by $1,417,000 and professional services costs increased by $669,000 in relation to the first quarter of 2006.

This excerpt taken from the ZBRA 10-K filed Mar 1, 2007.
Research and Development Costs. Research and development costs are expensed as incurred. These costs include:

·                  Salaries, benefits, and other R&D personnel related costs

·                  Consulting and other outside services used in the R&D process

·                  Engineering supplies

·                  Engineering related information systems costs

·                  Allocation of building and related costs

From time to time, Zebra will provide engineering and development services to third parties on a contract basis. Zebra does not guarantee the outcome of this research and does not retain any obligation to repay third party funding received for these

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contract services. Since these services are not part of our standard product offering, we treat payments received under these arrangements as reductions to research and development costs.

This excerpt taken from the ZBRA 10-Q filed Nov 8, 2006.

Research and Development Costs

The development of new products and enhancement of existing products are vital to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

     Three Months Ended     Nine Months Ended
   September 30,
2006
   October 1,
2005
(restated)
   Percent
Change
    September 30,
2006
   October 1,
2005
(restated)
   Percent
Change

Research and development costs

   $ 11,774    $ 11,818    (0.4 )   $ 36,191    $ 35,256    2.7

Percent of sales

     6.3      6.7        6.6      6.7   

Quarterly product development expenses fluctuate widely depending on the status of on-going projects. We are committed to a long-term strategy of significant investment in product development. For the third quarter of 2006 although total research and development costs were constant compared to the third quarter of 2005, payroll and benefits increased by $965,000 with a related increase in headcount. Offsetting this increase was a decrease in project expenses of $1,038,000. For the year to-date, professional services costs also decreased.

This excerpt taken from the ZBRA 10-Q filed Aug 7, 2006.

Research and Development Costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

     Three Months Ended    Six Months Ended
     July 1,
2006
   July 2,
2005
(restated)
   Percent
Change
   July 1,
2006
   July 2,
2005
(restated)
   Percent
Change

Research and development costs

   $ 12,382    $ 12,386    —      $ 24,417    $ 23,437    4.2

Percent of sales

     6.6      7.0         6.7      6.7   

Quarterly product development expenses fluctuate widely depending on the status of on-going projects. We are committed to a long-term strategy of significant investment in product development. For the second quarter of 2006 although total research and development costs were constant compared to the second quarter of 2005, payroll and benefits increased by $1,428,000 with a related increase in headcount. Offsetting this increase was a decrease in project expenses of $735,000 and professional services of $454,000. The decrease in project expenses was related to the write-off of $1,047,000 during the second quarter of 2005 for tooling and other materials related to product development offset by an increase in the current quarter related to other project expenses of $312,000.

This excerpt taken from the ZBRA 10-Q filed May 10, 2006.

Research and Development Costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

     Three Months Ended
     April 1,
2006
   April 2,
2005
(restated)
   Percent
Change

Research and development costs

   $ 12,035    $ 11,052    8.9

Percent of sales

     6.8      6.5   

Quarterly product development expenses fluctuate widely depending on the status of on-going projects. We are committed to a long-term strategy of significant investment in product development. For the first quarter of 2006, payroll and benefits increased by $1,244,000 in relation to the first quarter of 2005. Project expenses decreased during the first quarter of 2006 by $399,000. This decrease was related to the write-off of $1,071,000 during the first quarter of 2005 for tooling and other materials related to product development offset by an increase in the current quarter related to environmental compliance costs and other project expenses of $672,000.

This excerpt taken from the ZBRA 10-K filed Feb 28, 2006.
Research and Development Costs. Research and development costs are expensed as incurred. These costs include:

      Salaries, benefits, and other R&D personnel related costs

      Consulting and other outside services used in the R&D process

      Engineering supplies

      Engineering related information systems costs

      Allocation of building and related costs

 

From time to time, Zebra will provide engineering and development services to third parties on a contract basis. Zebra does not guarantee the outcome of this research and does not retain any obligation to repay third party funding received for these

 

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contract services. Since these services are not part of our standard product offering, we treat payments received under these arrangements as reductions to research and development costs.

 

This excerpt taken from the ZBRA 10-Q filed May 6, 2005.

Research and Development Costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we made investments in research and development, summarized below (in thousands, except percentages):

 

 

 

Three Months Ended

 

Percent Change

 

 

 

 

 

 

 

April 2, 2005

 

April 3, 2004

 

 

Research and development costs

 

$

10,668

 

$

8,896

 

19.9

 

 

 

 

 

Percent of sales

 

 

6.2

 

 

5.8

 

 

 

 

 

 

 

 

Quarterly product development expenses fluctuate widely depending on the status of on-going projects. We are committed to a long-term strategy of significant investment in product development. For the first quarter of 2005, payroll and benefits increased by $954,000 in relation to the first quarter of 2004. Research and development expenses also included $1,071,000 in a write-off of tooling and other materials related to product development.

 

17



 

This excerpt taken from the ZBRA 10-K filed Mar 3, 2005.
Research and Development Costs. Research and development costs are expensed as incurred. These costs include:

                  Salaries, benefits, and other R&D personnel related costs

                  Consulting and other outside services used in the R&D process

                  Engineering supplies

                  Engineering related information systems costs

                  Allocation of building and related costs

 

From time to time, Zebra will provide engineering and development services to third parties on a contract basis. Zebra does not guarantee the outcome of this research and does not retain any obligation to repay third-party funding received for these contract services. Since these services are not part of our standard product offering, we treat payments received under these arrangements as reductions to research and development costs.

 

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